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Here, DreamTai members can post their views, ideas, opinions and list of stocks which they like and which have given a Buy Signal or Sell signal by DreamTai stock Trading Software.

Sunday, February 21, 2010

How To Be A BillionaireShaun Rein, Research reveals three qualities common to people who build great fortunes.

Have you dreamed of becoming a billionaire?

Based on the response I've gotten to my recent article "Three Myths About Starting Your Own Business," many people have.

They imagine having wealth like the founders of Google ( GOOG - news - people ) and Apple ( AAPL - news - people ), so they can fly to their own chateaus on the French Riviera in a Gulfstream IV or maybe even a Boeing ( BA - news - people ) 737.

They picture making it onto the Forbes Rich List and buying diamonds from Tiffany ( TIF - news - people ).

What does it take to get that rich? Are billionaires completely different from you and me?

Not long after lunchtime one day on the New York Stock Exchange three years ago, unusual things started to happen. Hundreds of thousands of “buy” and “sell” messages began flooding in, signalling for orders to be made and simultaneously cancelled.

The volume of messages sent in was so large that the traffic coming into the NYSE from thousands of other trading firms slowed, acting as a drag on the trading of 975 shares on the board.

The stock market is back at a key resistance level after rising on vapors. But does it have the strength to break through to the upside?

TO MEASURE THE QUALITY of any stock-market rally, we look at such factors as market breadth and volume.

Technical analysis textbooks tell us that truly healthy and therefore sustainable gains in the stock market are built on substantial participation by a clear majority of stocks. In other words, we need the public and institutions involved in a big way buying almost anything that looks decent.

Last week we were looking at a bearish reverse flag formation, but this week prices broke above a short-term declining trend line, effecting a bullish resolution of the flag and changing the short-term outlook to bullish. This was confirmed by a PMO (Price Momentum Oscillator) buy signal, generated as the PMO crossed up through its 10-EMA.

The negative side of the picture is that volume accompanying the breakout and subsequent advance only has been averaging about 85% of the 250-EMA of daily volume, which does not reflect broad confidence in the move. This, plus other evidence we will discuss, makes me think the breakout could be a bull trap.

After a second strong week for the markets, all three major US indices (S&P 500, Dow 30, Nasdaq) are now back above their 50-day moving averages. We'll see if this positive technical momentum can carry over into Monday, which has recently been a very strong day for the markets